Wells Fargo’s recent upgrade of Enterprise Products Partners (EPD) puts fresh attention on how its midstream assets and expansion projects intersect with rising U.S. liquefied petroleum gas exports and shifting European and Asian energy demand.

EPD’s share price return of 18.13% year to date and 1-year total shareholder return of 31.60% suggest momentum that aligns with Wells Fargo’s upgrade and recent commentary around Permian driven volumes and rising LPG export activity.

If this kind of energy infrastructure story interests you, it can be worth scanning for other pipeline and export related plays in the power and grid ecosystem using the 33 power grid technology and infrastructure stocks

With EPD trading at $37.99, an 8.7% discount to an average analyst price target of $41.30 and a reported intrinsic discount of about 59%, the question is whether there is still a buying opportunity here or whether the market is already pricing in future growth.

Most Popular Narrative: 7% Undervalued

With Enterprise Products Partners trading at $37.99 against a widely followed fair value of $40.85, the current narrative leans toward the stock having some remaining valuation headroom.

The completion of two gas processing plants in the Permian, along with several key pipeline and export terminal projects, is expected to enhance Enterprise Products Partners’ infrastructure, potentially driving revenue growth from increased volume handling and exports.

With no major planned downtimes for the PDH plants after recent maintenance, Enterprise is poised to capture additional EBITDA that was previously lost to unplanned outages, suggesting potential earnings improvement.

Want to see what sits behind that fair value gap? The narrative leans on steady volume growth, firmer margins, and a richer earnings multiple, all stitched together into one valuation story that might surprise you.

Result: Fair Value of $40.85 (UNDERVALUED)

However, you still need to weigh risks such as Enterprise’s roughly US$31.9b debt load, as well as potential tariff or Permian activity shifts that could pressure the thesis.

Next Steps

Given the mix of optimism and concern in this story, it is worth checking the numbers yourself and moving quickly to form your own view with the 3 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.